Post Office Monthly Income Scheme Account – MIS
Table of Contents
What is Monthly Income Scheme Account – MIS
Monthly Income Scheme Account – MIS is a Government of India backed saving scheme that offers guarantee return. The investment can be done at India Post Offices.
What is the interest rate on MIS
- Interest rate is 6.6% payable monthly.
Tax benefit of investing in MIS
- The Interest amount is subject to tax.
- Amount invested in MIS is not allowed as deduction under section 80C.
MIS Investment amount
- Deposits in multiple of Rs 1,000/-
- Maximum amount Rs 4,50,000/- in a single account and Rs 9,00,00/- in joint account
Salient features of MIS
- Account may be opened by
- (i) a single adult
- (ii) Joint Account (Maximum 3 adults)
- (iii) Minor above 10 years of age
- (iv) A guardian on behalf of a minor/Person of unsound mind.
- Account can be opened by cash/Cheque and in case of Cheque the date of realization of Cheque in Govt. account shall be date of opening of account
- Nomination facility is available at the time of opening and also after opening of account
- Account can be transferred from one post office to another.
- Any number of accounts can be opened in any post office subject to maximum investment limit by adding balance in all accounts (Rs. 4.5 Lakh)
- Minor after attaining majority has to apply for conversion of the account in his name
- Maturity period is 5 years from 1.12.2011
- Interest can be drawn through auto credit into savings account standing at same post office,orECS./In case of MIS accounts standing at CBS Post offices, monthly interest can be credited into savings account standing at any CBS Post offices
- Can be prematurely en-cashed after one year but before 3 years at the discount of 2% of the deposit and after 3 years at the discount of 1% of the deposit. (Discount means deduction from the deposit.)
- No bonus is payable on the deposits made on or after 1.12.2011
- Interest shall be payable to the account holder on completion of a month from the date of deposit
- If the interest payable every month is not claimed by the account holder such interest shall not earn any additional interest.
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